BNB token is the key to the entire BNB network that now operates on its self-developed Binance Smart Chain to accommodate faster cryptocurrency transactions and improve the efficiency of its trading platforms. Despite its huge declining market cap, BNB holds the #5 rank with a value surpassing $43,266,807,674 and 81% of BNB tokens entering the supply.
While the higher collection of gas fees creates the scenario of lesser decentralization, BNB took the revolutionary step to burn a percentage of its supply volume. The burning mechanism is derived from the value of the BNB token and the total number of blocks generated on the Binance Smart Chain, offering much higher transparency to the users and the BNB community.
BNB has a fairly consolidative but positive trending price action with strong buying at certain intervals that has improved the outlook in both the short and long term. With support moving upwards, the chances of breakout have become even stronger. Check out our BNB predictions to know when the breakout will happen.
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BNB token has maintained its upside momentum with a positive streak. Taking support from the lower band and facing resistance from the upper band of its parallel channel movement demands a breakout. The recent bounce back finds a synchronized response from its 100 DMA.
As such, buyers are expecting BNB to surpass the 100 Days exponential moving average, which can face some sideways consolidation. RSI showcases a decent improvement in the buying sentiment compared to a week ago, while the MACD indicator maintains a positive outlook in the short term.
At present, the immediate resistance of $269 is pushing the buyers towards the negative zone. This price movement creates the perfect scene for a breakout to emerge at present value. A stronger resistance at $331 would further test the buyer’s sentiment, but that is a case after breaching the immediate resistance. Support for BNB has emerged stronger at the $194 mark, making it a safe zone for buyers to add more BNB to their portfolio.
The price action for BNB becomes more clear with weekly candlesticks. This shows the support for the May 2021 breakout has maintained its strength as it now serves the interest of BNB at the $200 mark after its huge decline. Recent candlesticks after the June 2022 lows have one common element, lower wicks, that indicates a buying action at lower prices.
Since last week’s candle created a pin bar pattern, it was assumed that resistance is getting difficult for buyers to surpass. But at the same time, the current week’s prices emerged from a dip creating a lower shadow and repeating the buying action at discounted values.
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There remains a marginal difference between the current and last week’s peaks, which could change buyers’ sentiment if BNB breaches $277 by the end of the current week. While RSI is still in the negative zone, MACD indicates that a bullish crossover will soon happen. It would be capable of taking BNB to new heights not seen since the decline in May 20222.
